🎫Settlement System

How Settlement Works?

At Expiration: The oracle captures the final price of the underlying asset at the exact settlement time. It compares this final price to the opening price that was captured when the market started. Based on this comparison, the system determines which side wins.

Three Possible Outcomes: If the price went UP from open to close, UP positions win and receive payouts. If the price went DOWN from open to close, DOWN positions win and receive payouts. If the price is exactly unchanged (extremely rare), it's a TIE and all positions are refunded with no fees charged.

Payouts: Winning positions receive $0.99 per position, which is $1.00 minus the 1% settlement fee. Losing positions receive $0 per position. Remember that only direction matters—a 0.1% increase and a 10% increase both result in complete UP victory. Magnitude is irrelevant.

Settlement Examples

Example 1: Bitcoin Hourly Market (+0.71%)

User A bought 1,000 UP positions at 62¢. Their cost was $620 plus $1.55 trading fee, totaling $621.55 invested. They win because price went UP, receiving $1,000 minus $10 settlement fee, totaling $990 payout. Their profit is $368.45, representing a 59.3% ROI on their investment.

User B bought 2,000 UP positions at 45¢. Their cost was $900 plus $2.25 trading fee, totaling $902.25 invested. They also win because price went UP, receiving $2,000 minus $20 settlement fee, totaling $1,980 payout. Their profit is $1,077.75, representing a 119.5% ROI on their investment.

User C bought 1,500 DOWN positions at 55¢. Their cost was $825 plus $2.06 trading fee, totaling $827.06 invested. They lose because price went UP, receiving $0 payout. Their loss is -$827.06, representing a 100% loss of their investment.

Key Insight: User B achieved better ROI than User A despite both winning. Why? User B got a better entry price of 45¢ versus 62¢. Cheaper positions offer higher ROI when they win, but they also have lower probability of winning. This creates the classic risk-reward tradeoff.

Fee Structure

Trading Fees are 0.25% applied to each buy or sell transaction. These fees go directly to liquidity providers who are maintaining the orderbook depth. This creates a sustainable incentive for market makers.

Settlement Fees are 1% applied to winnings only, not to losing positions. These fees go to the platform treasury to fund development, security, and operations. You only pay this fee if you win.

Tie Fees are 0%, meaning no fees are charged on ties. If the price doesn't move, you get a full refund. This ensures fairness on the rare occasion of exact price matches.

Gas Fees range from $0.10 to $0.50 per transaction depending on Base network congestion. These fees go to the Base network validators, not to Libera. This is the cost of on-chain execution.

Fee Examples:

Buy and Hold to Settlement: You pay 0.25% trading fee when entering the position. If you win, you pay 1% settlement fee on your winnings. Total fees are approximately 1.25% if you win. If you lose, you only paid the 0.25% entry fee.

Buy and Sell Before Settlement: You pay 0.25% trading fee when entering the position. You pay another 0.25% trading fee when exiting before settlement. No settlement fee applies since you exited early. Total fees are 0.5% regardless of whether the position was winning or losing when you exited.

No Hidden Fees: There are no subscription costs to use the platform. No withdrawal charges are applied when you move funds out. No maker/taker differences exist—all traders pay the same 0.25% rate. Transparent smart contract enforcement means fees are exactly as documented with no surprises.